Cameroon GCE A/L June 2017 ECONOMICS 2


SECTION A

  1. (a) Distinguish between Microeconomics and Macroeconomics (5 marks)

(b) Why is Economics considered as a science? (15 marks)

  1. (a) Why would sellers generally offer a greater quantity in the market the higher the price? (12 marks)

(b) is there any exception to this generalization? (8 marks)

  1. Should a firm in perfect completion cease production if it fails to cover its costs? (20 marks)
  2. (a) Why is interest paid for the use of someone else’s capital? (4 marks)

(b) why so many interest rates exist in Cameroon? (16 marks)


SECTIONS B

  1. (a) Differentiate between injections and leakage in the various types of economies (10 marks)

(b) With the use of a diagram, show how they can be used to determine equilibrium national income in a closed but governed economy. (10 marks)

  1. (a) How do commercial banks create credit? (6 marks)

(b) In what ways can the bank of Central African states (BEAC) control this credit creation? (14 marks)

  1. “The Philips curve is not relevant to the realities of the economy of Cameroon.” Discuss. (20 marks)
  2. (a) What is meant by the terms of trade? (8 marks)

(b) discuss the factors which could improve upon the terms of trade of a country. (12 marks)

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